Markets have been happy to sell the dollar recently on the narrative that the US is seeing slowing economic data, inflation is falling, and the prospect of federal reserve interest rate cuts are growing ever closer. This dollar weakness is expected to continue as long as the Federal reserve doesn’t signal any more rate hikes.
A series of interest rate hikes from the Federal reserve has kept the dollar bid continually this year. Inflation fears have been the driver of these rate hikes and the dollar long position is showing extreme stretch position in the…
The latest CFTC report shows that traders are stretched to the long side on the USD. When you can see stretched positioning it means that there is a vulnerability for a sharp correction if there is any reasons for USD selling.
On average gold has gained 1.87% through the month of August. The months of July and August tend to be strong for gold seasonally and the appeal of gold could be set to grow further over the coming months. Gold…
On Wednesday at 13:30 UK time the US CPI print will be released. The headline is expected to fall to 3.1% from 4% prior & a reading below 2.9% would likely weaken the USD. The core reading is also expected to fall to 5% from 5.3% prior, & a reading below 4.9% should also weaken the USD. The print that should boost the USD would be if both headline and the core come in above market’s maximum expectations.
This week, the GBP could experience significant fluctuations as key events unfold. On Wednesday morning (UK time), UK Headline Inflation is expected to reveal one of the lowest readings in over a year, while the core reading is anticipated to…
This chart shows the seasonal impact of the US Producer Prices Index print over the last 275 prints. US inflation, alongside US labour data, is a key focus of the Federal Reserve right now. Check out to see how the seasonal…
Another really notable trend around this time of the year is USD weakness. This is due to some taxation reasons that regularly sees USD flows out of parent US companies into daughter companies around year end. So, the USD does…
The GBP has been pressured recently on USD strength, concerns over Brexit, stresses over a 2022 recession to last 15 months, huge energy price rises, and inflation projections from the BoE to go over 13%. So, the new plan from…
The USD has a period of seasonal weakness around the start of June. Over the last 10 years it has fallen 7 times between May 31 and June 10. The average fall has been -0.93% and the maximum fall has…
